Press release

Traineeship funding consultation emphasises outcomes for young people

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

A consultation on the future funding of traineeships has been launched today by Skills and Enterprise Minister Matthew Hancock.

Traineeships are currently funded using the same arrangements as further education rather than a bespoke approach. The consultation proposes funding training providers on the basis of trainees’ progression to apprenticeships, jobs or further learning. Changes would be intended to encourage better results for young people and achieve a more consistent experience for 16 to 24 year olds on the programme.

Matthew Hancock said:

Traineeships are at the heart of the government’s drive to tackle youth unemployment. The number of traineeships is growing fast.

This consultation will test whether a funding approach designed specifically for traineeships, rather than based on existing arrangements, could produce better results for young people. We also want to make the experience more consistent, regardless of which department is responsible for funding.

The consultation is now open and the results will be announced in autumn 2014. The changes would take effect at the beginning of the 2015 to 2016 academic year.

It builds on recent changes the government has already announced and on early feedback from training providers, employers and trainees themselves. From March 2014 young people on benefits have been able to study for more than 16 hours per week on a traineeship. From August 2014, 24 year olds will be funded for the first time to undertake traineeships and providers will be given greater flexibility to arrange work placements.

Notes to Editors

  1. The consultation is available at Traineeships: funding reform in England.

  2. For more information on traineeships, visit the National Apprenticeship Service website.